A bubble tea store raises the price of its boba tea from $5 per day to $7 and finds that sales of the boba tea contracts from 1,000 cups a week to 900 cups per week.

a. What is the formula for calculating price elasticity of demand? Express the formula as PEoD (Price Elasticity of Demand) = A/B (4 points).

b. Show here your calculation of A in the above formula (6 points).

c. Show here your calculation of B in the above formula (6 points)

d. Calculate the PEoD (2 point). Is this an elastic or inelastic demand? (1 point) Explain (1 point).

e. Show here your calculation of whether total revenue from the boba tea rises or falls and by how much (5 points).